Microsoft to establish its first datacenter region in New Zealand

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#2477935 6-May-2020 15:29

rb99: Is it that expensive ? Have seen $100million+ mentioned. Same price as that Costco place, which is just an overgrown shop.

I'm not used to dealing with those sized numbers. It may be pocket change to Microsoft, not to mention the brownie points with local government and industry.

CCL is mentioned, and they have existing DC facilities. https://concepts.co.nz/datacentre/ Perhaps a joint venture of some sort?

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wellygary

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#2477996 6-May-2020 15:52

rb99:

Is it that expensive ? Have seen $100million+ mentioned. Same price as that Costco place, which is just an overgrown shop.

Costco is a 3 story building sitting on $23 M of land they bought.

According to this article to develop a regular Bunnings/M10 mega/PnS style shed will set you back $30-$40 M ( presumably with cheaper land) https://www.stuff.co.nz/business/120710333/costco-plans-to-spend-100-million-on-auckland-store

rb99

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#2478007 6-May-2020 16:17

wellygary:

rb99:

Is it that expensive ? Have seen $100million+ mentioned. Same price as that Costco place, which is just an overgrown shop.

Costco is a 3 story building sitting on $23 M of land they bought.

According to this article to develop a regular Bunnings/M10 mega/PnS style shed will set you back $30-$40 M ( presumably with cheaper land) https://www.stuff.co.nz/business/120710333/costco-plans-to-spend-100-million-on-auckland-store

Would be interesting to know how much that land cost the people who later sold it for that price.

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#2478099 6-May-2020 17:52

I predict 6 millisecond response times for Microsoft.

amanzi: Wonder how long before AWS responds...

From Sydney? Approx 23 milliseconds ; ). /nerdjoke

TwoSeven

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#2478102 6-May-2020 18:07

I think I have asked when a data center will be opened here quite a few times of the last decade so will make a difference I think.

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#2478103 6-May-2020 18:12

This is going to reshape IT in New Zealand - opening up more cloud opportunities in the sector

Well done Mircrosoft!

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freitasm

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#2478109 6-May-2020 18:28

Batman:

is this for the use of CIA to spy on Australia?

Why would they bother, if they already have multiple regions in Australia - even a "government" one?

I think you are seeing conspiracies where none exist.

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#2478114 6-May-2020 18:33

Dynamic:

CCL is mentioned, and they have existing DC facilities. https://concepts.co.nz/datacentre/ Perhaps a joint venture of some sort?

CCL and (owner) Spark are mentioned in the release. I'd say it's a CCL/Revera/Spark play, not involving Datacom at all.

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#2478122 6-May-2020 18:49

I think Freitism has it most closely. I’m not a complete expert here, but I understand that Microsoft are in the business of *using* datacentres, not building and owning datacentres. I’m pretty sure that, in Australia, MS and Amazon and Oracle all share the same physical data centre; and I would be surprised if MS would build one here in NZ. Unisys has pretty much exited the data centre business; and it doesn’t make sense economically for MS to build a new facility.

I think this is a software play with partners, likely Revera/Spark. One good thing about MS cloud is it scales down somewhat, so more appropriate to NZ than, say for example, Oracle cloud.

i didn’t hear the PM, but I’m sure it’s a case of ‘any good news’ in the circumstances. I can’t get overly excited about this news, it is more marketing than real benefit.

Oblivian

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#2478133 6-May-2020 19:34

freitasm:

Dynamic:

CCL is mentioned, and they have existing DC facilities. https://concepts.co.nz/datacentre/ Perhaps a joint venture of some sort?

CCL and (owner) Spark are mentioned in the release. I'd say it's a CCL/Revera/Spark play, not involving Datacom at all.

Exisitng DC / DataCentres ;)

everettpsycho

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#2478149 6-May-2020 20:19

Come on getting xcloud from this. It would be nice to get rid of some of the delay we have on teams as well, I've noticed it's been really bad on team meetings on there.

It will be good to really be able to utilise the advantages of the ufb network as well to see reduced response times without having to go overseas.

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#2478194 6-May-2020 20:47

Yep, I doubt they are building a fresh, but rather er using existing partner structures, not dissimilar to Au.

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#2478217 6-May-2020 21:06

cyril7:

As for Spark only providing international transit via MD, one would assume a partner in a $100M+ venture can make such limitations dissapear if they were important.

Cyril

For the capacity Microsoft would want they would be installing their own DWDM systems, i.e. multiple 10 Gbit or even 100 Gbit channels, to the handover points on the various international submarine systems. I would think Spark would have some spare fibres on the Raglan route which could be diverted directly into the new data centre provided it was in the Hamilton / Huntly area. If this route can be accessed at two points then it could potentially support separate diverse links S and N to Raglan and Auckland. With a third route to Auckland undoubtedly feasible the centre could have triple redundancy to three separate international routes and two to national handover points in Auckland.

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#2478224 6-May-2020 21:30

cyril7: Yep, I doubt they are building a fresh, but rather er using existing partner structures, not dissimilar to Au.

Cyril

The PM's announcement specifically mentioned jobs created in the construction of the facility.

BlinkyBill

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#2478370 7-May-2020 07:49

Looks like MS *does* build and operate data centres, and *is* planning to build one here in NZ. Heard this from an industry colleague who heard it directly from a MS exec. My contact did note that ‘plans change’.

So it’ll be interesting to see what transpires.

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